HC Deb 16 May 1980 vol 984 cc680-1W
Mr. Aspinwall

asked the Secretary of State for Education and Science if he is satisfied with the current system whereby teachers who accept early retirement receive a payment under the Redundancy Payments Act, a pension and a lump sum under the teachers' superannuation regulations, have their reckon-able service enhanced up to a maximum of 10 years and then are able to take further employment by Government sponsored organisations, so enhancing their personal financial circumstances and increasing public expenditure.

Mr. Mark Carlisle

A teacher aged 50 or over, whose employment is terminated by reason of his redundancy or in the interests of the efficient discharge of his employer's functions, becomes entitled to receive his accrued superannuation benefits. The employing authority has discretion to enhance—from its own funds— those benefits by payments made in proportion to notional additional years of service.

Those notional—or compensatory—added years are restricted by various formulae based on age and length of service but 10 years are the maximum possible under the arrangements. Where more than 6⅔ added years are awarded to a teacher who receives a redundancy payment, however, a reduction must be made to the lump sum payable and, in some instances, to the amount of annual compensation.

The teacher is also required to declare any income he subsequently receives on re-employment as a teacher—or on any post where he would contribute to a pension in the teachers' superannuation scheme—and this would result in abatement of the supplementary annual compensation and possibly the normal pension already in payment. These principles apply generally to compensation schemes throughout local government service.